For the old hands at Loganair, cast your mind back to 2000 when Scott Grier address the pilot workforce in Holiday Inn and announced that the Shorts 360s fleet would be disbanded, and that the plan was to operate six Saab 340s by 2002/03 to serve Scotland.
He also said the Twitters would be going as well, but I suspect the revised PSO arrangement changed his mind.
The Scottish Government will not allow Loganair to fail, although the size & shape might well contract to what existed at the start of the century.
As to what support HMG gives for south of 55°N is another matter, and of course with the Manx government in the mix as well.